1. Export support in CR Doc.Ing.Alena Longauerová,PhD.

2. EGAP The Export Guarantee and Insurance Corporation (EGAP) was founded in June 1992 as a state-owned export credit agency, insuring credits connected with exports of goods and services from the Czech Republic against political and commercial risks. EGAP, now part of the state export support programme, provides insurance services to all exporters of Czech goods irrespective of their size, legal form and volume of insured exports.

3. EGAP The mission of EGAP -is to provide credit insurance with state support and assist the Czech exporters, investors and their banks in situations when they are unable to find insurance for risks connected with financing of an export or of a foreign investment on the market.

4. State Support of Export Export support is a part of the general economic policy of the state. The state is assisting in acceleration and multiplication of positive effects achieved by Czech firms on foreign markets by the system of the pro-export policy

5. Support for SME EGAP offers to the SMEs in cooperation with several banks a substantially simplified administrative procedure in insurance of: credits for pre-export financing of the production for export or for financing of an investment in the production for export, credits for pre-export financing bank guarantees for obligations of an exporter in relation to terms and conditions of winning or fulfilment of an export contract bank guarantees

6. Environmental impact of export and investment Principle of sustainable development requires reduction of negative impact of human economic activities on environment

7. IAE Based on the filled-in Questionnaire and recommendation of the expert, EGAP shall classify the export into one of following categories: Those exports are classified as category A where significant adverse environmental impacts can be assumed which go beyond an area where the said export will be realized, they are primarily exports to sensitive areas or sectors,sensitive areas or sectors Those export are classified as category B where the environmental impacts are less adverse than in the exports of category A, impacts are site-specific and can be mitigated; all selected export not classified as category A and category C shall be classified as category B, Those exports are classified as category C where the environment impact is minimal or none.

8. The country classification according to the export credit risk is made periodically and is based on results of the Country Risk Assessment Model (CRAM) processing the latest IMF and World Bank data on financial - economic situation of a classified country and the payment experience indicators of Export Credit Agencies - participants to the OECD Consensus OECD Consensus

9. O Category Country: Category: Country classification valid from: 04.11.2011 Countries in the category 0 with a high income per capita Australia Hungary PortugalAustria Iceland Slova kiaBelgium Ireland SloveniaCanada Israel South KoreaCzech Republic Italy SpainDenmark Japan SwedenEst onia Luxembourg SwitzerlandFinland Netherlan ds United KingdomFrance New Zealand United StatesGermany Norway Greece Poland

10. 7 Category http://www.egap.cz/klasifikace-zemi/index- en.php

11. Insurance products B -Insurance of a Short Term Export Supplier Credit Bf Insurance of a Short Term Export Supplier Credit Financed by a Bank Bf Insurance of a Short Term Export Supplier Credit Financed by a Bank C - Insurance of a Medium and Long Term Export Supplier Credit Cf - Insurance of a Medium and Long Term Export Supplier Credit Financed by a Bank C - Insurance of a Medium and Long Term Export Supplier Credit Cf - Insurance of a Medium and Long Term Export Supplier Credit Financed by a Bank D Insurance of an Export Buyer Credit E - Insurance of a Confirmed Letter of Credit F Insurance of a Credit for Pre Export Financing I Insurance of Investment of Czech Legal Persons in Foreign Countries E - Insurance of a Confirmed Letter of CreditF Insurance of a Credit for Pre Export FinancingI Insurance of Investment of Czech Legal Persons in Foreign Countries If Insurance of a Credit for the Financing of Investments of Czech Legal Persons in Foreign CountriesIf Insurance of a Credit for the Financing of Investments of Czech Legal Persons in Foreign Countries P- Insurance of Prospection of Foreign Markets V Insurance against the Risk of Inability to Fulfil an Export Contract P- Insurance of Prospection of Foreign MarketsV Insurance against the Risk of Inability to Fulfil an Export Contract Z -Insurance of Bank Guarantees Issued in Relation to an Export Contract Z -Insurance of Bank Guarantees Issued in Relation to an Export Contract

12. B Brief description of the insurance product and contacts An export supplier credit is a credit extended by an exporter to a foreign importer in the form of deferred of payment for delivered goods or services. The payment may be deferred for the maximum period of 2 years in case of a short-term export supplier credit. The export supplier credit has not character of a bank credit and the insured is directly the exporter who is covered against the risk that the foreign importer will not duly pay the full owed amount on the predetermined date.

13. You can find indicative insurance premium through the interactive calculator.the interactive calculator

14. 1.Export contract 2.Bank cover of an export receivable by a short-term credit 3. Insurance contract 4.Indemnification paid to the insured or to a bank on request of the insured

15. Bf Brief description of the insurance product and contacts An export supplier credit financed by a bank is a credit extended by an exporter to a foreign importer in the form of deferment of payment for delivered goods or services which has been subsequently bought by a bank from the exporter without any buyback option. The payment may be deferred for the maximum period of 2 years in case of a short-term export supplier credit. The insured is the bank that is covered against the risk that the foreign importer will not duly pay the full owed amount on the predetermined date.

16. Scheme

17. Stage 1.Export contract 2. Contract on purchase of an export receivable 3. Insurance contract 4. Purchase of a receivable 5.Effectiveness of the insurance contract 6.Indemnification 7. Option of recourse against the exporter in case the exporter caused the insurance loss

18. Brief description of the insurance product and contacts An export supplier credit is a credit extended by an exporter to a foreign importer in the form of deferment of payment for delivered goods or services. The maturity exceeds 2 years in case of a medium- and long- term export supplier credit. Conditions of insurance are governed by the OECD Arrangement; these rules require a down-payment by the foreign importer of at least of 15 per cent before the credit is extended. EGAP also reserves the right to request from an exporter to submit an environmental impact assessment of the export in the importer’s country. The export supplier credit has not character of a bank credit and the insured is directly the exporter who is covered against the risk that the foreign importer will not duly pay the full owed amount on the predetermined date.

19. Scheme

20. 1.Export contract 2.Bank cover of an export receivable by a medium-term or long-term credit 3.Insurance contract 4.Indemnification paid to the insured or to a bank on request of the insured

21. Cf Brief description of the insurance product and contacts An export supplier credit financed by a bank is a credit extended by an exporter to a foreign importer in the form of deferment of payment for delivered goods or services which has been subsequently bought by a bank from the exporter without any buyback option. The maturity exceeds 2 years in case of a medium- and long-term export supplier credit. Conditions of insurance are governed by the OECD Arrangement; these rules require a down-payment by the foreign importer of at least of 15 per cent before the credit is extended. EGAP also reserves the right to request from an exporter to submit an environmental impact assessment of the export in the importer’s country. The insured is the bank that is covered against the risk that the foreign importer will not duly pay the full owed amount on the predetermined date. The insurance contract is co-signed by the exporter who guarantees the fulfilment of all his obligations and that he will not in any way endanger the repayment of the credit

22. Schema.

23. 1.Export contract 2. Contract on purchase of an export receivable 3.Insurance contract 4.Purchase of a receivable 5.Effectiveness of the insurance contract 6.Indemnification 7.Option of recourse against the exporter in case the exporter caused the insurance loss

24. D An export buyer credit is a credit extended by a bank to a foreign importer for purchase of goods or services. The bank pays the exporter and the owed amount is then repaid by the foreign importer on a regular schedule stipulated in the credit contract. The recipient of the credit and afterwards the debtor is in some cases the bank of the foreign importer. The maturity of the credit exceeds 2 years. Conditions of insurance are governed by the OECD Arrangement; these rules require a down- payment by the foreign importer of at least of 15 per cent before the credit is extended. EGAP also reserves the right to request from an exporter to submit an environmental impact assessment of the export in the importer’s country. The insured is the bank that is covered against the risk of the non-repayment of the extended export buyer credit on the stipulated

25. D scheme

26. 1.Export contract 2. Credit contract for financing of the export contract 3.Obligation to further extend the credit to the importer 4. Insurance contract 5.Obligation of the exporter to the bank 6.Indemnification 7.Option of recourse against the exporter in case the exporter caused the insurance loss

27. E Brief description of the insurance product and contacts A Documentary Letter of Credit is a written obligation of a bank of a foreign importer to pay to an exporter for delivered goods and services after presentation of prescribed documentation. The issued Documentary Letter of Credit shall be confirmed by the exporter’s bank which thus guarantees the obligation of the foreign importer’s bank. The insured is the confirming bank of the exporter that is covered against the risk of material damage resulting from a full or partial non-payment in accordance with conditions of the confirmed Documentary Letter of Credit. Insurance also covers a so-called silent confirmation of the Documentary Letter of Credit. Both issuing and confirming banks only control whether all documents prescribed by the Letter of Credit have been presented; they do not control the goods or services and payments from the Letter of Credit are completely separated from contracts of sale.

29. 1.Export contract 2.Request of the importer to open a L/C 3.Confirmation of the L/C 4. Insurance contract 5.Notification of the exporter on opening of the L/C 6.Indemnification